March 7, 2003


The Honorable Pamela Olson
Assistant Secretary for Tax Policy
U.S. Department of the Treasury
1500 Pennsylvania Avenue, N.W.
Washington, DC  20220

Dear Assistant Secretary Olson:

     Thank you for making a special effort to listen to the
concerns of the small business community about the Internal
Revenue Service's (IRS) proposed rule on Excise Taxes and
the Definition of Highway Vehicles (REG 103829-99).  Because
this proposal has a significant economic impact on a
substantial number of small businesses, we commend your
decision to provide Congress the opportunity to review the
issue before taking further action.
     
     Congress established the Office of Advocacy under Pub.
L. 94-305 to represent the views of small business before
Federal agencies and Congress.  The Office of Advocacy is an
independent entity within the U.S. Small Business
Administration (SBA), so the views expressed by the Office
of Advocacy do not necessarily reflect the views of the SBA
or the Administration.  Section 612 of the Regulatory
Flexibility Act (RFA) requires the Office of Advocacy to
monitor agency attention to the unique nature of small
business when developing regulatory proposals.  On August
13, 2002, President Bush underscored the importance of
agency compliance with the RFA and the Office of Advocacy's
role in giving a voice to small businesses in the rulemaking
process when he signed Executive Order 13272, titled "Proper
Consideration of Small Entities in Agency Rulemaking."
     
     This renewed emphasis on removing regulatory barriers
that can stymie business job growth is making a difference
and we are pleased that Congress will have the benefit

of a full record that you helped  create on the IRS's
proposal.  Written comments and testimony in the docket
underscore the importance of this issue for tens of
thousands of small businesses.  It makes sense to proceed
carefully with all the facts so that no small businesses
suffer unintended, long-term economic damage.
     
     We appreciate your initial decision to extend the
comment period and allow time for more small businesses to
provide input on the proposal.  The extended comment period
was very helpful and set the tone for future cooperation on
controversial issues.  Your efforts captured the spirit of
Executive Order 13272 issued by the President.

     Thank you again for your serious consideration of our
requests in this matter.  We look forward to working with
you in the future.

Sincerely,


Thomas M. Sullivan
Chief Counsel for Advocacy


Russell Orban
Assistant Chief Counsel